SR-502-001-01 (2)
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council Meeting: September 23, 1986
Santa Monica, California
To:
Mayor and City Council
From:
City staff
Subject:
Resolution Establishing Miscellaneous
Water Division Operating Fees
Introduction
This report requests the City Council approve a resolution
establishing miscellaneous Water Division operating fees. The
resolution makes no changes in the bi-monthly water use rates.
Background
At the September 9, 1986 meeting, the City Council approved the
second reading of the changes to the Municipal Code, Chapter VII
Division 2, relating to Water Division operation. Those changes
removed some specific fees from the Municipal Code and allow the
Council to establish the fees by resolution. The fees that now
need to be established are billing and collection fees (including
the fees for collection trips and returned checks) and service
and meter installation fees. These fees have not been changed
since 1972.
Billing and Collection Fees
The Water Division charges customers for trips made by Division
personnel to make a collection of a late payment, to return a
property to service, or make shut-off for non-payment.
An increase in the fees for trips to customer's property is
required due to the increased cost of labor since 1972. (See
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table below. The basis for the charges are shown in Exhibit I
(attached) .
Billing and collection calls are also made after business hours.
Costs are greater for non-business hours as more highly skilled
employees are used for stand-by and are paid on a call-back basis
for a minimum of three hours. staff proposes charging
approximately 2/3 of the actual cost for non-business hour calls
rather than full cost recovery because full actual cost is
inflated due to the City's obligations to pay the three hour
minimum.
Charge for Returned Checks
A charge of $10.00 is proposed for a customer who submits a check
for any payment if the check is returned by the bank for any
reason. This fee is to cover the office costs of processing and
obtaining a "good" check (based on .6 hours of Administrative
Staff Assistant time). In addition, section 1719 of the
California Penal Code allowing treble damages will be utilized
when appropriate.
Service and Meter Fees
Division personnel also charge customers for making a new service
connection and for installing a new water meter. The existing
and proposed rates are shown in the table below and are based on
average installation costs as shown in Exhibit I. (attached)
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TABLE I
BILLING AND COLLECTION FEES
COLLECTION TRIPS
Meter Size
Business Hours
Old New
Non-Business Hours
Old New
1-1/2" and Smaller
$2.00
$8.00
$10.00
$14.00
$2.00
$8.00
$25.00
$40.00
2" and Larger*
* Because of their size, these larger meters require additional
labor to access and operate.
RETURNED CHECK FEE
Old - No Charge
New - $10.00
SERVICE AND METER FEES
The Service and Meter Fees indicated below reflect the Division's
actual costs:
Meter Size Service Fee Meter Fee Total Service and Meter
Old New Old New Old New
5/811 X 3/4" $165 $350 $ 35 $ 45 $200 $395
I" $180 $390 $ 75 $110 $255 $500
1 1/2" $250 $560 $150 $245 $400 $805
2" $330 $670 $225 $330 $555 $1000
The Service Fees were calculated by averaging the work order
records of the last 6 months for the various size services.
Impacts
The impact on the average 'tvater consumer of the proposed fees
will be small. Only those consumers requesting special services
in the form of special collection trips from the city or those
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requiring additional service by the city will be effected and
they will be required to pay only the actual cost of the special
services which they have required. The significant increase in
the cost of new water services will effect new smaller
construction projects only (single family homes, small apartment
and condo buildings) and brings the City's charges into the cost
range of the neighboring jurisdictions for similar installations
as shown in the following table.
WATER SERVICE INSTALLATION COSTS(METER INCLUDED)
3/4 X 5/8" 1" 1-1/2" 2"
Santa Monica $ 395 $ 500 $ 805 $1,000
(proposed)
Los Angeles 1,645 1,675 2,635 2,835
Inglewood 550 600 1,000 1,100
Beverly Hills 600 600 800 1,200
Notification
staff proposes that the service and meter installation fees and
the returned check fee take effect October 10, 1986 since only
new development and bad check writers will be effected. The
Collection Trip Fees, however, should be delayed until January I,
1987 so that customers can be advised of this change (in the city
utilities pamphlet to be mailed in early November, 1986).
The Santa Monica Chamber of Commerce and the CIPA were advised of
proposed fee increases 15 days prior to the council meeting.
Water Division Staff have been available to meet with these
groups in the event they had questions or concerns they sought to
discuss.
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Financial/Budget Analysis
The increased fees for collection trips and returned checks will
result in an estimated increase of approximately $15,000 in
revenue account number 25-914-235-000-000 (Water Miscellaneous
Non-Operating~ $30,000 annual increase prorated for six months
from January 1 to June 30, 1987), and an estimated increase of
$29,750 in revenue account number 25-914-236-000-000 (Water
Meter/Service Installation~ $42,000 annual increase prorated for
eight and one-half months, from October 10, 1986 to June 30,
1987). The check fee is not expected to generate significant
revenue.
Recommendations
The Staff recommends that the city council:
L Adopt the attached resolution establishing the following
fees:
SERVICE AND METER INSTALLATION FEES*
Meter Size service Fee Meter Fee
5/8" X 3/411 $350.00 $ 45.00
1" $390.00 $110.00
1 1/2" $560.00 $245.00
211 $670.00 $330.00
BILLING AND COLLECTION FEES
Service Trips**
Meter Size
Business Hours
Non-Business Hours
1-1/2" and Smaller
211 and Larger
$10.00
$14.00
$25.00
$40.00
RETURNED CHECK FEE*
$10.00
* To become effective October 10, 1986.
** To become effective January I, 1987.
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2. Adjust the following revenue accounts in the FY 86-87 budget
as shown:
Revenue Acct#
Name
Charge
+$15,000.00
25-914-235-000-000 Water Misc. - Non-Operating
25-914-236-000-000 Water Meter/Serv.lnstallation +$29,750.00
Net Budget Change
+$44,750.00
Prepared by: stan Scholl, Director of General Services
Ed Lash, utilities Manager
Jack Hoagland, Administrative Water Engineer
Attachments: A. Resolution
B. Exhibit I
(MUNICOD4)
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Exhibit I
Water Division Operating Fees
Cost Worksheet
Billing and Collection Fees
A trip across Santa Monica takes an average of 15 minutes, plus
15 minutes at the site for a total of one-half hour of Field
Inspector time; an additional one-tenth hour of office time is
required for the Administrative staff Assistant to dispatch the
Field Inspector.
Total labor rates for a Field Inspector are
$14.24 per hour and $17.38 per hour for an Administrative Staff
Assistant (business hours) I for a total labor cost of $8.86.
Equipment charges of $1.00 are also accrued for a trip cost of
$9.86 (rounded to $10.00).
An additional 15 minutes of field
time at the meters 2" and larger is required adding $3.56 to the
costs ($13.42 total cost rounded to $14.00).
For a fter hours
reconnection, the costs are greater since the "stand-by"
personnel consist of supervisors and water leaders and they are
more highly paid and are guaranteed three hours pay for any call
up to two hours in length.
The total cost for after hours
reconnection of service is $64.36 based on the following
components:
3 hours X $20.47 (avg. rate for standby personnel)
$61. 41
Equipment
1. 00
0.1 hour X $19.53 (Water Operator to handle call)
1.95
TOTAL
$64.36
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staff believes that subsidizing the non-business hours costs is
justified as part of the service provided to consumers and
therefore has proposed lower charges than the actual costs. (See
proposed billing and collection fees in the Table 1 of staff
report) .
Returned Check Fee
Administrative staff Assistant .6 hrs X 17.38 per hour = round to
$10.00.
New Service and Meter Installation Fees
New Service Fees Components are as follows:
Component Service Size 1" 1 1/2" 2"
Labor $148.00 $222.00 $271.00
Material 84.51 180.59 218.93
Equipment 42.00 56.00 77.00
Repaving* 100.00 100.00 100.00
Total 374.51 558.59 666.93
*Minimum repaving charge
Note that I" services are installed for both 5/8" X 3/4" and 1"
meters and the service fees in Table 1 of the staff report have
been
adjusted
slightly
to
maintain
the
historic
price
relationship between the sizes. The dramatic increase in these
costs is due to the long time period since the last change (14
years) .
The Meter Fees were determined from the Water Division
costs of purchasing small quantities of the particular meter
size.
(MUNICOD5)
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BEFORE DI STRIBUTION CHECK CONTENT OF ALL FOR CITY__CfERK 1 S ACTIO\
DISTRIBUTION OF RESOLUTION f ;7~/~ ORDINA~CE #
Councll ~1eetl.ng Date 9b~/!C Introduced:
,\gend.l I tern >I ,/;.~ c:!- Adopted'
AU~AYS PD'BLISH AOOPl'lcD ORDlNANCES*
h'(l SIt amended? 14 *Cross out Attornev r S aDDroval
\TOTE' .'l,ffirmatIve ~ ~r... A'L::42J +~
~egatlve' ~~~ ~
Abstain-
Abs en t. 1 Ufi ,r:U-/ 4---t'~
-rRDOF \-'"0'1 rc. 1.\'J TH A:JO'YHER PERS01\' BEFORE ANYTHING
DISTRlEUTION: 0RIGI~AL to De signed, sealed and flIed in Vault.
~
\"EWSPAPER PUBLICATION (Date: )
Department orIgInatIng staff report ( * )
*Clty Attorney does not wanL copIes of his ordl1uances or resolutIons.
~13_nagement SerV'l~es Lynne Barrette 0rdlnances only ~
~gency mentIoned In document or staff report
(certIfIed?)
SubJect fIle (agenda packet)
1
Counter fIle
1
Others' (ReVleW for departments who need tol<noo).
A1.rport
Parklng Auth.
Audltorum
Personnel
B'..nldIng Dept.
PlannIng
eLU (lII..llll ty and EconCl[TllC Dev..
PolIce (en-
forcement?)
FInance
PurchaSIng
fIre
Recr/Parks
Generdl Servo
Transportation
LIbrary
Treasurer
Manager
Afi-f-av
S!:.\-D FOUo. COPTES OF ALL ORDINA\;CES TO;
CODED SYSTB1S, At tn Peter ~"lacrear:i e
i:: D '!a~n r"!:r....et
A~n1 vew Jersev_07'11
_ 1 f . .. _II.!
SE\D FOUR COPIES OF A LT. ()RnTi\ANr.F~ to:
D~b!"a "'lvrlck
:::'i\\.~TA \lO\ICA \-HJNICIPAL COURT
1 -; 2 S ~fA I\ STREET, Room 118
S:\'"T:\ \10:\ 1CA, CA 90401
I
*Check Cooe Sect LOns before sendJ.ng.
TOTAL COPIES
3
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RESOLUTION NO. 7313(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA ESTABLISHING WATER SERVICE AND
METER INSTALLATION FEES AND MISCELLANEOUS WATER
SERVICE COLLECTION FEES
WHEREAS,
Section 7211 (a)
of the Santa Monica
Municipal Code establishes charges for the installation of water
services and water meters: and
WHEREAS, Section 7208 of the Santa Monica Municipal
Code establishes fees for each trip to a consumer's property for
the purpose of collecting a delinquent water service bill or
discontinuing water service; and
WHEREAS, section 7208 of the Santa Monica Municipal
Code establishes a fee for any check returned to the Water
Division as unpayable for any reason: and
WHEREAS, the adoption of changes to the Santa Monica
Municipal Code Division VII, Chapter 2 on September 9, 1986 will
delete the existing charges for water service and meter
installation and fees for each trip to a consumer's property for
the purpose of collecting a delinquent bill or discontinuing
service; and
WHEREAS, the Department of General services of the
City of Santa Monica will be notifying all customers of record of
the municipal regulations, fees and charges pertaining to
municipal utility operations in November, 1986.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
,
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. That effective October 10, 1986, the water
service and meter installation charges shall be:
Meter Size
Service Fee
Meter Fee
5/8" x 3/4"
111
1-1/211
2"
$350
$390
$555
$665
$45
$110
$245
$330
SECTION 2. That effective January I, 1987, the fee
for each trip to a consumer's property for the purpose of
collecting a delinquent bill or discontinuing service shall be:
During Business Hours
1-1/2" and smaller meters
$10.00
$14.00
2" and larger meters
During Non-Business Hours
1-1/2" and smaller meters
$25.00
$40.00
2" and larger meters
SECTION 3. That effective October 10, 19B7, the fee
for any check returned to the Water Division as unpayable for any
reason shall be ten dollars ($10.00).
SECTION 4. That until January I, 1987, the fees for
each trip to a consumer's property for the purpose of collecting
a delinquent bill or discontinuing service shall be $2.00. In
the event water service is discontinued due to non-payment, an
additional fee of $2.00 may be charged for resuming service.
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SECTION 5.
The City Clerk shall certify to the
adoption of this resolution and thenceforth and thereafter the
same shall be in full force and effect.
Approved as to form:
~ '"'^ ~
City Attorney
(MUNICOD6)
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Adopted and approved this 23rd day of September, 1986.
~K l-~
I J Mayor
I hereby certify that the foregoing Resolution No. 7313(CCS)
was duly adopted by the city council of the City of Santa Monica
at a meeting thereof held on September 23, 1986 by the following
Council vote:
Ayes: Councilmembers:
Conn, Jennings, A. Katz and Mayor
Reed
Noes: Councilmembers:
Epstein
Abstain: councilmembers:
None
Absent: councilmembers:
H. Katz and Zane
ATTEST:
a~7Jz~
City Clerk